The Front Row View (entertainment insurance blog)

IDA Producer's E&O: What is My Distributor / Financier Asking For?

Written by Kent Hamilton | Oct 2, 2023 2:04:24 PM

Documentary E&O Insurance | IDA Insurance | IDA Members Insurance

Why is errors and omissions (E&O) insurance needed for a documentary?

You sold your documentary! You met your distributor requirement of obtaining a three year E&O policy through the IDA (International Documentary Association) program. Congrats!

However, you read the fine print in the contract and you’re surprised to see several requirements:

  • First, the distributor wants you to extend your policy to cover them by naming them Additional Insured in case of a claim. No problem: you just send a request and provide us with your distributors name and address. This will generate a certificate of Insurance (COI). The certificate will detail: your company name and address, what insurance company is covering you, how much insurance the project has (i.e. $1,000,000/$3,000,000), and what the retention (deductible) is, e.g., $10,000 or $25,000).
  •  Second, the distributor wants to be covered for more than three years! You just paid a lot of money for a three year policy. Will this cost you more premium? The answer is maybe. There is a special endorsement called a “Rights Period Endorsement (RPE) ” or “Term of Contract Endorsement (TOC)”. This endorsement will extend the length of your E&O term to match the length of your distributors agreement as long as you notify the insurance carrier prior to the expiration of your policy. Just send us your distribution contract and in the majority of cases, the insurance carrier will provide you with this money-saving endorsement.

Now you can breathe easier knowing that your E&O policy is in place to protect your company, financiers and distributors.

Producer's E&O will cover legal & judgment costs if you are found responsible for any of:

  1. Invasion or infringement of privacy
  2. Infringement of copyright or trademark
  3. Libel, slander or other forms of defamation
  4. Plagiarism, piracy or unfair competition resulting from the alleged use of titles, formats, ideas, characters, plots, performances of artists or performers or other material
  5. Breach of contract, implied or in fact or in law, resulting from the alleged submission, acquisition or use of program, musical or literary material used by the insured in the insured production

Please note that this is an illustration only: for a detailed outline of E&O coverage, contact us and we will send you a sample policy wording. In the event of a coverage conflict given the advice above, the policy wording would prevail.

In addition to the completed signed application, we MAY need the following:

  1. Distribution Agreement if available. If a rights period endorsement is required.
  2. Title Search & Report if title coverage is required. Please note that carriers will often include title cover at no additional premium. Once terms have been obtained, we will be able to confirm you know if a title report is needed. Most distributors will require that the title be covered prior to release/broadcast. The insurance company will quote/bind the coverage with the title excluded. Once a favorable report is received, they will remove the exclusion at no additional cost.
  3.  If you are relying on fair use, we will also need a Fair Use Opinion Letter and clip log from a media law attorney. References can be provided upon request.

DISCLAIMER: Informational statements regarding insurance coverage are for general description purposes only. These statements do not amend, modify or supplement any insurance policy. Consult the actual policy or your broker for details regarding terms, conditions, coverage, exclusions, products, services and programs which may be available to you. Your eligibility for particular products and services is subject to the final determination of underwriting qualifications and acceptance by the insurance underwriting company providing such products or services. This website does not make any representations that coverage does or does not exist for any particular claim or loss, or type of claim or loss, under any policy. Whether coverage exists or does not exist for any particular claim or loss under any policy depends on the facts and circumstances involved in the claim or loss and all applicable policy wording.